Ibovespa Closes Lower on Fiscal Concerns

2026-06-30 21:01 By Isabela Couto 1 min. read

The Ibovespa fell 0.7% to close at 172,024 on Tuesday as investors reduced risk at the end of the first half and assessed weaker fiscal and labor market data.

Gross public debt rose above forecasts in May, while primary deficit was wider-than-expected.

Gross debt reached 81.1% of GDP, above market expectations of 80.7%, the primary deficit totaled R$56.1 billion, exceeding forecasts of a R$53.5 billion shortfall.

The deterioration in fiscal accounts reinforced concerns over higher borrowing costs and persistent pressure on interest rates.

Meanwhile, formal job creation also missed expectations, with around 73,000 new positions created in May, below forecasts of 115,000.

Losses were broad-based across the index.

In the banking sector, Banco do Brasil fell 1.7% and Itaú lost 0.5%.

Utilities also traded mostly lower, with Axia down 1.3%.

Petrobras dropped 0.9% as oil prices tumbled to their lowest levels since 2020, while Braskem shed 4.3% after being downgraded by JPMorgan and Citi.



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Ibovespa Closes Lower on Fiscal Concerns
The Ibovespa fell 0.7% to close at 172,024 on Tuesday as investors reduced risk at the end of the first half and assessed weaker fiscal and labor market data. Gross public debt rose above forecasts in May, while primary deficit was wider-than-expected. Gross debt reached 81.1% of GDP, above market expectations of 80.7%, the primary deficit totaled R$56.1 billion, exceeding forecasts of a R$53.5 billion shortfall. The deterioration in fiscal accounts reinforced concerns over higher borrowing costs and persistent pressure on interest rates. Meanwhile, formal job creation also missed expectations, with around 73,000 new positions created in May, below forecasts of 115,000. Losses were broad-based across the index. In the banking sector, Banco do Brasil fell 1.7% and Itaú lost 0.5%. Utilities also traded mostly lower, with Axia down 1.3%. Petrobras dropped 0.9% as oil prices tumbled to their lowest levels since 2020, while Braskem shed 4.3% after being downgraded by JPMorgan and Citi.
2026-06-30
Ibovespa Posts Losses After Fiscal Figures
The Ibovespa fell more than 1% to trade below 171,000 on Tuesday as investors reduced risk at the end of the first half and assessed fiscal data. Brazil’s gross public debt rose above forecasts in May, while the consolidated public sector posted a wider-than-expected primary deficit. Gross debt reached 81.1% of GDP, above market expectations of 80.7%, while the primary deficit totaled R$56.1 billion, exceeding forecasts of a R$53.5 billion shortfall. The deterioration in fiscal accounts reinforced concerns over higher borrowing costs and persistent pressure on interest rates. Losses were broad-based across the index, with financial stocks among the main drags. Itaú and Bradesco both fell more than 1%. Utilities also traded lower, with Axia down 1.5%. Other notable laggards included Ambev (-1%), WEG (-1%), and Rede D'Or (-2%). Vale and Petrobras posted milder losses, supported by firmer iron ore and slightly higher oil prices.
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The Ibovespa closed little changed at 173,205 on Monday as developments in the Middle East remained in focus. The US and Iran agreed to suspend recent hostilities and resume diplomatic talks after exchanging fresh attacks over the weekend. Oil prices rebounded but remained near pre-conflict levels, limiting concerns over renewed energy-driven inflation. Financial stocks led gains, with Itaú rising 0.4% and Bradesco adding 1.4%. Petrobras edged up 0.2% alongside the modest recovery in oil prices, while Vale slipped amid lower iron ore prices. Meanwhile, Ambev (-0.8%), Vivo (-1.1%), and Embraer (-2.1%) underperformed.
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